AD #4090 – Investors Like Potential of Robotaxis; EVs Hold Value Better in China; Ford & Stellantis Squeeze Their Suppliers

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

INVESTORS LIKE POTENTIAL OF ROBOTAXIS
Yesterday we showed you the market cap of the top 22 car companies in the world. Their average value is $84 billion. If you don’t include Tesla, which has a crazy valuation, it’s $43 billion. But another thing that caught our eye is that Uber has a market cap of $202 billion. That’s more than any automaker except Tesla and Toyota. Uber has been growing and is finally profitable, but what seems to be getting the interest of investors is its robotaxi deals with Waymo and Volkswagen. And in China, robotaxi operator Baidu has a market cap of $30.5 billion, which is higher than Stellantis and at least 9 other automakers. This seems to indicate that the stock market really likes the future earnings potential of robotaxis. That could bode well for Tesla, which Elon says will expand its robotaxi service to San Francisco in a month or two. Maybe automakers like General Motors and Ford are going to come to regret that they gave up on the technology too early.

BMW JUST EKED OUT Q2 GAIN
BMW reported its second quarter sales and it just barely eked out a gain. Including Mini and Rolls-Royce, BMW sold more than 621,000 vehicles, which was up 0.4% compared to last year. Its fully-electric vehicles outpaced the rest of the lineup, and were up almost 3%, to more than 111,000 units. BMW would have had an even better quarter if it wasn’t for slumping demand in China, where sales were down nearly 14%. Sales in Europe were up 10% and in the U.S. they were up 1.4%.

JAPANESE AUTOMAKERS CUT PRICES OF EXPORTED VEHICLES
Japanese automakers are sacrificing profits to remain competitive as the U.S.’s tariffs go into effect by cutting the prices of vehicles exported into the country. According to the Bank of Japan, the export price index for cars shipped to North America dropped 19% in June compared to a year ago, the largest drop in its records, which go back to 2016. The Bank of Japan is worried that profits will drop and impact automakers’ ability to keep raising wages, which is an important component of the Bank’s sustainable inflation goal.

FORD & STELLANTIS SQUEEZE THEIR SUPPLIERS
Ford and Stellantis don’t like U.S. tariffs on imported components and they’re demanding concessions from their suppliers to offset higher costs. Crain’s Detroit Business reports the automakers are changing the terms and conditions of their supplier contracts. For example, Ford used to let suppliers back out of a contract on a yearly basis if they wanted to. Not anymore. That’s because suppliers were able to use the threat of backing out of a contract to demand higher prices. Stellantis is agreeing to price hikes due to tariffs on a case-by-case basis, but is demanding that suppliers agree to a cost savings plan. In other words, they can raise prices now, but have to cut them later. Other automakers are working with suppliers to mitigate the cost of the tariffs, but Ford and Stellantis have a reputation for using hard-nose tactics. And they have the worst relations with suppliers, based on Plante Moran’s latest Workings Relation Index.

   

HYUNDAI REVEALS PERFORMANCE ELECTRIC SEDAN
Hyundai officially revealed the IONIQ 6 N, the performance version of its all-electric sedan. It features an 84 kWh battery pack that’s paired with a dual motor setup, which can produce up to roughly 480 kW or 640 horsepower. That’s double the power of a standard AWD IONIQ 6 and will move the N from 0-100 km/h in 3.2 seconds. And a reworked battery management system means that you repeat those numbers time and time again or put more laps on the track. On top of that performance boost, the 6 N also gets a fully redesigned suspension geometry and reengineered chassis, including electronically controlled dampers. As well as unique wheels and tires, additional aerodynamic elements and sports seats to keep your butt from sliding around. The IONIQ 5 N has all the same upgrades and specs as the 6 N, but we really liked our time in the 5 N, so we can’t wait to get our hands on this version. No word when the model will go on sale yet.

EVs HOLD VALUE IN CHINA
Xiaomi’s SU7 sedan has been a big hit in China since its debut just over a year ago and not surprisingly it now has the strongest resale value among all pure-electric vehicles. According to the China Automobile Dealers Association, the SU7 has a one-year resale value of nearly 90%. It’s followed by the Aito M9 at 84%, the Li Auto Mega minivan at 79%, the Tesla Model X comes in at 77% and the Model 3 rounds out the top-five at 76%.

MAZDA CX-5 GETTING 1ST HYBRID
Mazda pulled the wraps off its all-new CX-5 crossover. While styling is very similar to the outgoing model, the wheelbase is actually three inches longer, it’s 4.5 inches longer overall and over half an inch wider. Mazda says it really applied that extra space to the rear seat and cargo area of the vehicle. The dashboard has a pretty simple layered look, except for a large floating display screen in the middle. Power will come from a 2.5L 4-cylinder engine that makes 187 horsepower and is mated to a 6-speed automatic transmission. For the first time the CX-5 will also come with a hybrid, but that setup won’t launch until sometime in 2027. However, the standard gas version hits the market early next year.

MASERATI GIVES ITS SUPERCAR A NEW NAME
Maserati is renaming its roughly $250,000 in-house developed supercar from the MC20 to the MCPURA. And other than a new paint color and a few changes to materials and finishes, the name is about all that’s different. But it’s still powered by a 3.0L twin-turbo V6 that makes about 620 horsepower and features a carbon fiber body that keeps total weight under 1,500 kilograms or 3,300 pounds. So, it’s got all the makings for a fun drive.

We’ve got Sandy Munro coming on Autoline After Hours at 3 pm eastern time today. He has a lot to say about what the U.S. needs to do to boost its manufacturing capabilities. We also want to get his views on what will happen to the EV segment with the U.S. government gutting support for electrics. And we’d like to hear what he thinks is going on at Tesla and that fight between Elon Musk and President Trump. This ought to be a good one, so join John and Gary when the action gets going.

But that’s a wrap for this show and I hope to see you later today.